Are the financial statements for Chop5 Salad Kitchen audited?
Chop5_Salad_Kitchen Franchise · 2024 FDDAnswer from 2024 FDD Document
[Item 21: FINANCIAL STATEMENTS]
ITEM 21 FINANCIAL STATEMENTS
Our fiscal year ends on December 31st. Audited financial statements of CHOP5 Franchise LLC for the fiscal years ended December 31, 2023, December 31, 2022, and December 31, 2021 are attached to this Disclosure Document as EXHIBIT "G".
[Item 23: RECEIPT]
Independent Auditor's Report
To the Member CHOP5 Franchise LLC Louisville, Kentucky
Report on the Audit of the Financial Statements
Opinion
We have audited the accompanying balance sheets of CHOP5 Franchise LLC as of December 31, 2023, and 2022 and the related statements of operations, member equity and cash flows for the years ended December 31, 2023, 2022, and 2021, and the notes to financial statements.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of CHOP5 Franchise LLC as of December 31, 2023, and 2022 and the results of their operations and their cash flows for the years ended December 31, 2023, 2022, and 2021 in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinion
We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of CHOP5 Franchise LLC and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 50)
What This Means (2024 FDD)
According to Chop5 Salad Kitchen's 2024 Franchise Disclosure Document, the financial statements are indeed audited. Item 21 explicitly states that audited financial statements for the fiscal years ended December 31, 2023, December 31, 2022, and December 31, 2021, are attached as EXHIBIT "G".
Furthermore, the Independent Auditor's Report confirms that an audit of the balance sheets was conducted as of December 31, 2023, and 2022, along with related statements of operations, member equity, and cash flows for the years ended December 31, 2023, 2022, and 2021. The auditor's opinion indicates that the financial statements present fairly the financial position of Chop5 Franchise LLC in accordance with accounting principles generally accepted in the United States of America.
The audit was performed in accordance with auditing standards generally accepted in the United States of America (GAAS). This included evaluating management's responsibilities for the financial statements, assessing the risks of material misstatement, and obtaining an understanding of internal control relevant to the audit. The auditor's report provides reasonable assurance that the financial statements are free from material misstatement.
For a prospective franchisee, this means that the financial information provided by Chop5 Salad Kitchen has been reviewed by an independent third party, adding a level of credibility and reliability. This can help in making a more informed decision about investing in a Chop5 Salad Kitchen franchise.